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Charles Schwab
Corp.
SCHW 0.82%
is in talks to buy USAA's brokerage and wealth management operations for about $ 2 billion, an initiative that would push the pioneer of discount brokerage to financial advice.
The deal, which could bring about $ 100 billion worth of Schwab's assets held by the US, could be concluded this month, sources close to the record said.
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Schwab, which already has over $ 3,500 billion of client assets, has turned more towards wealth management for clients who once represented the territory of Wall elite corporations Street. Since 2015, the number of new retail clients opening investment accounts managed by Schwab has increased by 63%. New accounts receiving advice average about $ 600,000.
In March, the San Francisco company launched a new underwriting model with the goal of attracting more wealth management clients by making the boards more affordable than the traditional system of charging a percentage of the money. ;active.
An agreement with USAA would be the last step taken to extend Schwab's reach beyond its brokerage roots. Schwab, which publishes its results on Tuesday, is a powerful powerhouse with tentacles in banking, financial and conservation consulting and a market value of nearly $ 55 billion.
If there was to be an agreement, it would turn USAA, based in San Antonio, which provides a range of financial services to military customers, into a purely professional insurer.
USAA offers home, life and auto insurance as well as online banking and investment services to current and former military personnel and their families. It was founded in 1922 by a group of 25 army officers to self-insure their vehicles. It was originally known as the United States Army Automobile Association, according to the USAA website.
USAA entered into a contract this month to sell its asset management business, including its mutual fund and ETF business, as well as its savings plan. University of 529
Participations of the capital of the victory
Inc.
As of April 30, USAA had assets under management of $ 81.3 billion.
-Lisa Beilfuss contributed to this article.
Write to Dana Cimilluca at [email protected] and Telis Demos at [email protected]
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